Idea Cellular Q1 profit up 57% at Rs 728 cr on higher call rates
Idea, India's third-biggest mobile phone operator by users and revenue, said on Monday consolidated first-quarter profit was Rs 728 crore ($120.8 million), up from Rs 463 crore a year earlier.<br />
Mumbai: Mobile phone company Idea Cellular reported a 57 percent jump in quarterly profit on Monday, benefiting from fewer competitors, higher call rates and more customers using data plans.
Idea Cellular, India's third-biggest mobile phone operator by users and revenue, said consolidated first-quarter profit was Rs 728 crore ($120.8 million), up from Rs 463 crore a year earlier.
Analysts had expected Idea, part of the Aditya Birla conglomerate and nearly a fifth-owned by Malaysia's Axiata, to earn Rs 629 crore, according to Thomson Reuters I/B/E/S.
Leading mobile carriers in India started gaining market share in 2013 and were able to raise prices of voice calls after a court order on a licensing scandal forced some smaller companies out of the market (reut.rs/1puQy2p).
Revenue at the company rose to Rs 7555 crore from Rs 6534 crore last year.
Unlike rival Bharti Airtel, which has other businesses, Idea is solely a mobile phone services company and only and operates within India, making it a preferred telecoms stock for some brokerages.
Monthly average revenue per user, an important metric to evaluate the health of telecoms carriers, rose 4.6 percent on the previous quarter to 181 rupees. Average realisation per minute, another key metric, rose to 0.45 rupees from 0.44 rupees in the fourth quarter.
Idea also said that net debt had been cut by Rs 5.209 crore to Rs 13.977 crore in the quarter, adding that the reduction allows it to participate in a forthcoming spectrum auction. Idea, which has already bought airwaves for $1.75 billion from a state auction this year, needs to buy more in the next sale to renew its permits in nine service areas.
Idea shares closed at 139.75 rupees in Mumbai.
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